Markets remain dismal, Metals down

Key share indices are reeling under selling spell ahead of the expiry of July futures and options series tomorrow on selling pressure among Metal, Oil & Gas and Capital Goods segment. Weak global cues have also dampened the sentiments amongst local investors.

At 11:30, the 30-share Sensex was at 16,746 down 172 points and the 50-share Nifty was at 5,080 down 49 points. The Sensex and the Nifty have touched an intra-day low of 16,742 levels and 5,083 mark, respectively so far.

The rupee today fell by 18 paise to 56.29 against the dollar in early trade at the Interbank Foreign Exchange market, extending its losing streak for the fourth straight session as the American currency gained strength against other currencies overseas.

On the global front, Asian shares fell and the euro wobbled above multi-year lows against major currencies on Wednesday as soaring borrowing costs deepened worries that Spain might need a bailout, while Greece appeared unlikely to meet terms conditional to its aid package. Nikkei, Strait Times, Hang Seng, Taiwan, Kospi and Shanghai have fallen between 0.2-2%.

Back home, BSE Metal index has plunged by almost 2% followed by counters like Consumer Durable, Auto, Power, PSU, Oil & Gas, Realty, Capital Goods and FMCG, all declining by almost 1% each. Infact, all the major BSE sectoral indices are trading in red zone.

Jindal Steel and Power Limited is the top Sensex loser, down 4% at Rs 399, its lowest level since June 2009, after reporting 59% year-on-year (yoy) fall in consolidated net profit at Rs 385 crore for the quarter ended June 2012, due to a provision of Rs 574 crore for its impaired investment in Bolivia. Other metal shares like Hindalco, Coal India, Sterlite and Tata Steel have fallen between 1-2%.

From the Consumer Durable space, Titan Industries has dipped 2.5% to Rs 223. VIP Industries, TTK Prestige and Videocon are down 1-2% each in trades.

Auto shares like Tata Motors, M&M, Maruti Suzuki, Bajaj Auto and Hero Moto have slipped between 1-2%.

Other notable losers include Wipro, HUL, Dr Reddy’s Lab, Tata Power, Bharti Airtel and RIL.

On the gaining side, HDFC Bank and GAIL India are trading marginally positive.

Among individual shares, Torrent Power has tanked 8.2% at Rs 156, its lowest level since June 2009, after reporting 70% year-on-year (yoy) drop in net profit at Rs 104 crore for the quarter ended June 2012, due to higher power purchase cost. Operating profit margin too, declined to 16% from 31% for the quarter under review.

Fulford (India) has locked upper circuit of 10% at Rs 771 after its promoter Dashtag along with Merck & Co., Inc have made an open offer to acquire additional stake in the company at a price of Rs 830 per share.

The BSE-Mid cap Index and the BSE-Small cap are trading dismal, both dropping by nearly 1% each.

The overall market breadth in BSE remains negative with 1,435 stocks declining while 875 advancing.